62 million Americans facing automatic slash to Social Security checks by 24%

AMERICAN retirees could face an automatic slash to Social Security checks of 24 per cent if the trust fund dries up.

It comes as a nonpartisan committee moved up the insolvency timeline for Social Security’s trust fund to just less than a decade away.

Social Security gets funded in part by payroll taxes and by trust fund disbursements.

But when the trust fund runs down, federal law mandates that benefits be cut in accordance with revenues.

The Committee for a Responsible Federal Budget’s latest analysis makes for troubling reading for recipients.

Its report features updated fiscal projections following the passing of President Trump’s One Big Beautiful Bill Act.

The committee reckons that the law’s enactment has accelerated the insolvency timeline.

It could see Social Security’s trust fund insolvency as soon as late 2032, Fox Business has reported.

The size of a benefit cut would depend on a couple’s age, marital status and work history

“Policymakers pledging not to touch Social Security are implicitly endorsing these deep benefit cuts for 62 million retirees in 2032 and beyond,” the committee says.

“It is time for policymakers to tell the truth about the program’s finances and to pursue trust fund solutions to head off insolvency and improve the program for current and future generations.”

It comes as many Americans have stood at risk of losing out on 50% of their July Social Security checks under the SSA’s new policy on overpayments.

Americans who were overpaid retirement, survivor, family, or disability payments and notified on April 25 or later are subject to the 50% rate.